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Monthly Archives: October 2010

Indeed you have heard me lament and criticize many things.

I am afraid, however, many people would agree with you. People don’t like to hear “bad news” when I can’t put a happy ending on it. Politicians and pundits, they will never present a problem that doesn’t, at least, have the veneer of a solution. Ambiguity doesn’t work in religion or politics. People like concreteness, they like to know, so they don’t have to worry.

Everyone, and believe me, this I experience personally (from you, the most), thinks that doing “something” is better than doing “nothing.” And, I take it, you think I do a bunch of “nothing” by my research laden criticism, and my lack of education, or vocation. Really, however, I have just been trying to attain the truth about the state of our world.

A politician, and the pundits that give them platform, will only speak about divisive issues, and will usually only appeal to engineered biases, and merely speak of [piecemeal] solutions to polarized problems. They whip up their constituency every time with mostly compartmentalized, polarized, emotionally fueled issues to rile up a vote that puts them in power. Past election day, you are (obviously) forgotten.

I am not a politician. I am not looking to convince you of some simple problems and simple solutions so you’ll like me, and think I am really some “maverick” or “hockey mom” that makes millions off Fox News in a run-up for 2012. Anyone looking to get power, any politician, shouldn’t be trusted. Plain and simple. Why journalists don’t seem to practice that, why most anything is taken at face value, why no one digs for truth, is because, frankly, people want to be comforted more than informed. I am not trying to make friends, and I am not afraid to piss you off.

A politician is. To who’s benefit? That’s a question that remains unasked. Do you really think you have a voice with demagogues like Palin or Beck? Those people are just exploiting, and exacerbating, the right wing backlash against Obama. They won’t give a fuck after November, it will still be mostly financial interests, insurance interests, defense interests, real estate interests, banking interests, or union interests (in the house) that run the show. If you don’t donate more than $25,000 or so, you won’t even shake the hand of a politician, let alone have a voice consequential to legislation.

So now that I’ve knocked that down, and hopefully, destroyed your false hopes and comforting illusions presented to you by today’s politics…let me say the following…

What is the most important thing in most Americans lives, despite what they say, what do our actions lead us towards? Money. Where does money come from?

Debt. Money is just a claim on debt, that starts out from the federal reserve, backed up by bonds, AKA, debt. Then the banks get some of this money at nearly 0% interest (since we’ve been trying to encourage consumption – that is your only role in this country), and through “fractional reserve” they can dole out, say, 9 billion of 10 billion dollars from the treasury. AKA 90%. But, then, they’ve created more debt to someone else with that loan, and thus, just add the 9 to the 10, for 19 billion total. And then they loan 90% of the 9 billion, and 90% of that 90%, and so on, and so on, and eventually, that 10 billion can be loaned out to about 100 billion dollars.

Out of thin air. Money isn’t created until debt is. If all debts were paid, all money would disappear. That’s the way the system works.

And only about 2% of the entire money supply is in circulation, the rest is digital.

Is it no wonder, that after the end of the Bretton Woods agreement (gold standard) in 1971 (IIRC – no google allowed), via Nixon, and after Carter’s politically non-expedient attempts at lowering inflation via rising interest rates, that Regan came in with “Reagonomics” and increased government spending to record levels? He made it look good, too, as Wall Street was flooded with cash and corruption, and the Cold War was eventually won off all the increases in defense spending (that would prove to keep you in a job, imho). Savings and Loan crisis, it was the precursor to the step by step decline of Wall Street and our economy. With government debt, and Alan Greenspan’s low interest rates, everyone started to live off debt – off claims on future labor, off tomorrow. Sure it looks good, for 30 years we have done nothing but exponentially increase public and private debt in a futile attempt at keeping our standard of living.

And guess what all that debt, all that money, is all tied to? Oil.

You follow the oil, you’ll follow history. Oil peaked in 2008 somewhere over $150 a barrel IIRC in July, within 2 months, we were spending and/or guaranteeing trillions of dollars of cash to failed institutions to keep them afloat. Do you think the gov’t would do that unless it was scared shitless? The financial system is a house of cards, a ponzi scheme in itself, just waiting to collapse. The only thing that keeps it going, and any bubble, is the deluded small-time investors who know nothing of economics, nothing of finance, nothing of the power that runs this country, other than what is allotted to them on TV. Don’t bite the hand that feeds.

Why does Oil matter to finance? Because if oil demand exceeds production, growth stops economically. Economic growth is fundamental to our monetary system based on debt, because growth is necessary to service that debt. If it cannot be serviced, it is defaulted on. You will see many municipalities get the end of the stick from their federal and state governments, and it will hit home soon enough. We’ve been bleeding hundreds of thousands of jobs for quite some time now, and throughout every other recession in recent history, housing led the way out. Housing was the last stand for speculative bubbles. It went from an adjusted for inflation avg. price of 100k for the last 60 years, to 280k in 2005, the peak of the bubble. Those prices, and corporate property as well, all real estate, have a long, long way down to go. China’s economy has one investment vehicle, that’s real estate. They have produced 10% growth, or close, year over year for nearly a decade. An insane bubble, one so crazy they demolish new high rises, vacant ones, just to build a new one. Chinese that make $10,000 a year are buying $200,000 apartments that have nothing in them, not even carpet, or paint, as “investments.” China is nothing but new veneer.

And you may not think oil will run out, or anytime soon, but I have shared with you military reports, reports not meant to be seen by the public. Their authors do not have to worry about reelection, and they are not serving any secondary interests. They are merely being strategic. If the US Joint Forces Command says that we will have a possible shortage of oil necessary to demand by around 2012, and that it could lead to obvious conflict over the scant resources left, and that same military has been attempting to control the region that provides some of those resources for 10 years, I’d listen.

Some lefties know and will placate to our “addiction” to oil, or other fossil fuels. They will cry about the environment, which is fair enough, but they, like everyone else, rely on technology as a savior. As if “green” replacements such as wind and solar will save us. Ha. China controls all rare earth elements, practically speaking, and, not a single, nor all combined, renewable sources can be or will be feasibly implemented. But, on our way down, as we sip up more oil, left leaning politicians will pretend we can ween ourselves off.

We can’t and we won’t. Our entire infrastructure, our entire monetary system, our suburban way of life, and even our food crops are dependent on it.

And that’s the big problem. Anything like immigration, gays in the military, bush tax cuts, intelligent design in schools, whatever, it’s all distraction, all bullshit, all designed to keep you attuned to the “illusion of incremental change” as if some reworking of some legislation, or a couple of vetos, or some new faces from the tea party, are really going to change things….they aren’t. But if you’re pumped with enough bullshit, and given enough “answers” to non questions, you will be content. TV is the opiate of the masses. Arguing about anything other than the very precarious nature of energy and what we depend on it for is just rearranging the deck chairs on the Titanic.

To further that metaphor, everyone, left or right, anyone caught up in political agendas, is still dancing away on the Titanic as if it didn’t hit an iceberg. The thing is, we did, we are sinking, our debts are unserviceable, our economy and energy paradigm unsustainable, and our political machine is powerless. A charade.

The fundamentals of our way of life are unsustainable. We have pretended for too long that nature, and the physical, non-linear laws that govern it, was a subset of the economy. It isn’t. Economics isn’t a science. We need an entirely new paradigm, a new way of thinking, at least one that recognizes the dilemmas ahead, and the downward side of the bell curve.

Let me reiterate. This system, political, economic, is unsustainable. No amount of voting, no amount of pundits, no amount of clever Obama bashing will save us. We have sewn the seeds for our own destruction by ignoring the crumbling foundations we’ve used to rest our misconceived notions on.

That won’t stop the politicians from grabbing for power and trying to maintain the structures that keep them there for as long as they can, until the money runs out, or the oil does.

The solutions will end up resting on the cooperation of local people for survival, not on charlatans who are using a crisis as a Christian soap box. Not even God could make this failed system, failed way of life, work. However, I fear that few will heed that warning, and fascism will come wrapped in the American flag. Only time will tell.

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